Salespeople need to measure correctly
A large city contract was going out to competitive pricing. A great deal of the work was maintaining median turf islands. The salesperson responsible for estimating the job went to the site to measure.
He walked out to the first island and measured the width to make sure he got the square footage correct. The width was 8 feet. That was a pretty easy measurement, right? From there he got in his car, set his odometer, and proceeded to measure the lineal feet of the islands. There were several miles of islands.
When he arrived back in the office, it was pretty simple: 8 feet times the lineal measurement equals the total square feet, right? Wrong! As it turned out, that first island was the only median in the city that was 8 feet wide. The other islands were 12 feet wide. Considering the miles and miles of medians, this was a huge error.
As you'd expect, we were by far the low bid—so low that we were asked to come in and explain ourselves. Fortunately we discovered our mistake, which we shared with the city people. They graciously let us off the hook. This would have been a very expensive error for a five-year contract had we been awarded it.
Take the time to measure accurately. Also, establish a cross-check system to ensure that your estimates are accurate. Whether you are in the landscape installation or maintenance business, accurate estimates are at the root of your pricing.
A second set of eyes reviews big estimates
One of my most expensive mistakes was when a new employee left out an entire section from a landscape plan. Of course, we were low bid and got the job.
This was for a first-class, Fortune 500 world headquarters in Stamford, CT. The company was completely renovating their landscaping. We began the job. All was well until my project manager realized the entire courtyard was omitted from the job estimate. He immediately brought this to my attention. This oversight cost $50,000.
On large jobs like this, always have a second set of eyes review the estimate. Mistakes happen, but mistakes like this can be easily prevented.
Ed Laflamme LIC started his own business from scratch, built it up, sold it, and then wrote a book about how he did it. He is recognized as a CLP: Certified Landscape Professional. Bill Arman worked for and helped grow one of the biggest landscape companies in the country. Bill, alone, has gone on 15,000 quality site visits in his career. Bill is the author of a new book, "The Harvest Way for Recruiting and Hiring the Right People." Visit The Harvest Group for more information.